A capital loss generally cannot be carried forward unless the loss return is filed within the section 139(1) due date.
A capital loss generally cannot be carried forward unless the loss return is filed within the section 139(1) due date. Filing a belated return may still permit current-year set-off where the substantive set-off rules allow it.
Section 80 links carry-forward of specified losses to a return furnished in accordance with section 139(3), which in turn refers to the section 139(1) time. Capital losses are covered by the carry-forward regime in section 74. Short-term capital loss can generally be set off against short- or long-term capital gains; long-term capital loss is generally restricted to long-term capital gains. The late-return restriction concerns carry-forward to later years. It should not be casually extended to current-year set-off. Unabsorbed depreciation is governed differently and should not be conflated with capital loss.
Dev has a ₹3 lakh short-term capital loss and ₹1 lakh long-term capital gain in FY 2025–26. Subject to applicable rules, ₹1 lakh may be set off in the current year. If the loss return is late, the remaining ₹2 lakh generally cannot be carried forward. A generic page that says 'all loss is lost' would therefore be misleading.
For the complete rules on this topic, see the core guide: Set-Off and Carry Forward of Losses Under Income Tax.
See the broader Income-tax Act 2025 study guide hub for related rules and calculators on this topic.
A capital loss generally cannot be carried forward unless the loss return is filed within the section 139(1) due date. Filing a belated return may still permit current-year set-off where the substantive set-off rules allow it.
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